2019 2020

Account Receivable 450,000 ?

Prepaid 45,000 -

Account Payable 54,000 15,000

Machinery 9 M 9.5 M

Vehicle 12 M 13.4 M

Equipment 7 M 10 M

Accumulated Depreciation Machinery 1.5 M 1.7 M

Accumulated Depreciation Vehicle 2 M 2.1 M

Accumulated Depreciation Equipment 2 M 2. 1 M

Loan 8 M 10 M

Bonds Payable 7 M 8.9 M

Shares Capital 2 M 2. 11 M

Shares Premium 1.9 M 1.95 M

Retained Earnings 1 M ?

Note Payable - ?

____________________________________________________________________________

VEHICLE:

Cost: Rs. 350,000

Acc. Dep: Rs. 255,000

Selling Price: Rs 165,000

EQUIPMENT:

Cost: Rs 2 Million

Acc. Dep: Rs. 1.15 Million

Selling Price: Rs. 0.4 Million

Sales (40% Credit)

Sales Return 2% of total sales (70% Credit)

Sales Discount 3% of total sales (20% Credit)

Interest Expense 25,000 per month

Tax Rate 10%

Rent Expense 15,000 per month

Salary Expense 10,000 per month

Wages Expense 20,000 per quarter

Dividend Rate: 7.5% of Net Income After Tax.

Allowance for Bad Debt Opening Balance: 2,000 (Cr.)

Bad Debt Expense: 2% @ Account Receivable Balance. ____

FIFO PERPETUAL-Product (a)

Beginning Inventory 5500 units@Rs.120

Purchases 3000@ 110 (9-2-20)

Purchases 1000@ 120 (2-9-20)

Purchases 5000@ 115 (11-6-20)

Sales 6000 @ 2100 (2-10-20)

Sales 1000 @ 2400 (2-1-20)

Purchases 200 @ 112 (3-1-20)

All purchases in fixed assets were against issuance of Note Payable.

Prepare Income Statement, Statement of Retained Earnings and Cash Flow Statement for the year end December 2020